What Is The Best Way To Purchase Bitcoin – 2023 Guide
Recently, Bitcoin has yielded a greater return on investment than the highly-valued metal gold and profit-yielding real estate. As a result, it can be seen in media headlines and business magazines now and then. Moreover, with cutting-edge blockchain technology, Bitcoin has gained the attention of entrepreneurs, stakeholders, and governments worldwide. An increasing number of investors now wish to invest in this digital currency with its growing popularity and value.
Purchasing Bitcoin can be quite complicated, especially if one is a beginner in investments and portfolio management. Even for veteran investors, it is sometimes difficult to distinguish between legitimate and fraudulent exchanges or identify quality service sources from the overhyped ones.
Even with a simplified and transparent purchase procedure, picking out the most inexpensive, reputed, and trustworthy exchange market from over a thousand exchanges can be arduous and perplexing for both seasoned and budding investors.
This article briefly overviews Bitcoin and how to buy it in 2023. One can visit azcryptoexchanges.com to study Bitcoin in detail.
Bitcoin: The Modern Currency
Just like hard cash in the form of tangible coins and notes, Bitcoin is a means of exchange but virtual. It exists only in the digital world. One can still buy, sell, invest, lend, or use them for making payments. All the functions, from creation to accommodation, are carried out and recorded in a highly distributed digital repository known as the blockchain.
It allows a user to make online payments and transfer money using a highly decentralized technology that facilitates peer-to-peer communication. It was developed about a decade ago, in 2009, by a covert, anonymous fellow nicknamed Satoshi Nakamoto. Since then, a genius community of programmers and developers has been developing and maintaining this incredible technology.
How does It work?
In technical terms, Bitcoin is a computer file created by the Bitcoin blockchain. These auto-generated files are kept inside a virtually created wallet on a device like a smartphone or a computer.
This file can be transferred from one device to another, which means the currency can be transferred from one individual to another. It can also be fragmented into Satoshis to allow partial payments from the file. This file is substitutive. It means one can purchase another asset in exchange for this file.
Today, one can use Bitcoins to buy tangible goods and services in real life. The reason is its ever-increasing value and extensive adoption by people. For security and consistency, every Bitcoin transaction is recorded on the rigid blockchain, eliminating the possibility of double-spending and fraud.
The Best Way To Buy Bitcoins In 2023
One can purchase Bitcoins through various payment modes. Following the commons modes supported by a majority of exchange platforms:
- Credit Card/Debit Card
- Bank Wire
- Anonymous (No ID Verification)
One may wonder which of these is the best way to purchase these coins. The answer is through credit cards. Buying Bitcoin currency with card payment has numerous advantages over other payment methods. They include the following:
Faster Deposits And Withdrawals
Transactions made through credit cards are very swift and smooth. This is because card payments do not involve lengthy verification procedures like those in bank transfers. Hence, one can instantly purchase Bitcoin on various exchanges. Moreover, most platforms do not apply extra charges for depositing currency through credit cards.
Highly Secured And Protected
Credit cards provide independence from bank accounts up to a certain level. Though it may sound like a threat, it actually builds an additional layer of security and protects one’s account from scams and fraud. The changes that occur during transactions are not made to the bank account. The change will appear on the bank account only when an individual pays the owed credit. Hence, credit cards ensure additional security.
Bitcoin payments through credit cards are comparatively more straightforward than their counterparts. Other payment modes require signing up on third-party merchants for payments or rigorous verification procedures for deposits and withdrawals. It can sometimes take several days to complete these procedures. But card payments only require the user to link the card with the platform, and one can instantly carry out transactions.
How To Purchase Bitcoin With A Credit Card?
Buying Bitcoins is very easy with the help of a credit card. Given below are the steps involved in the process:
Signing Up On A Crypto Exchange Platform
Bitcoins are digital currencies, so one needs to use a cryptocurrency exchange to perform the transactions. Binance and Coinbase are two well-known exchanges used by many investors.
Choosing an exchange with a built-in Bitcoin wallet is recommended to perform transactions from the same platform. It will save one from the lengthy and risky procedure of signing up for a third-party payment merchant app. However, if one still wants to store the currency outside the exchange platform, one needs to ensure that it permits withdrawals and does not charge additional fees for the service.
Paying Through Credit Cards
The next step after signing up is to fill the account with funds. Some service providers do not permit card payments to purchase Bitcoin or any other cryptocurrency. Others allow credit card payments but may apply extra charges. One needs to beware of such conditions prior to making any payments.
It is not advisable to buy Bitcoin in debt. However, when using a credit card to purchase cryptocurrency, one should try to repay the debt immediately to avoid paying higher interest.
Once the account is funded with reserves, it is time to purchase the Bitcoins. The procedure is pretty simple from here. One simply needs to navigate to Bitcoin on their respective exchange platforms and type the amount one wants to invest. The value of one Bitcoin keeps fluctuating. But an investment of roughly around $20,000 refers to a share of one Bitcoin. If the investor buys a stake of $1000, he owns 5% of a Bitcoin.
The Bottom Line
The Bitcoin market has been booming for the last few years and has attracted the attention of many potential investors. Credit cards are a great way to make fuss-free and less time-consuming payments to buy Bitcoins. However, one must keep their e-wallets safe and secure from potential online scams and fraud. One must verify the authenticity of the exchange and the merchant platform before signing up for their services. Also, one must thoroughly go through all the terms and conditions of investments in Bitcoin and its risks.